Supply Chain Movement issue 22 – Logistics Outsourcing

Contents Supply Chain Movement 22 – 2016 Q3

Publishing date: 16 September 2016

6 | News & Background

  • ‘It’s all about Customer Segmentation’
  • Winner of last quarter: Unilever
  • Loser of last quarter: Volkswagen
  • Unilever wants to improve its planning and differentiation
  • Strategic moves among logistics providers

8 | Snapshots: Launch Supply Chain Executive Club

12 | 3PL Subway Map

Manufacturers and retailers welcome the ongoing consolidation in the fragmented logistics industry. they want logistics service providers to offer full service on a global scale and are demanding more technological innovation. these are the main conclusions from supply Chain movement’s annual study as the basis for the 3pl Subway Map Europe 2016, which shows the specific services of the most important logistics service providers.

14 | Profile Daniel Helmig, Global Head Supply Chain Management, ABB

One year ago global technology company ABB launched the second stage of its Next Level Strategy. this is a huge company-wide transformation that will put more focus on its customer offering as it aims to become leaner, faster and more agile. To help achieve its goal it cut its regions from eight to three and streamlined its divisions from five to four. As part of the Next Level Strategy, ABB will accelerate the implementation of its previously announced 1,000-day programs to drive white-collar productivity and working capital management. the company aims to achieve a $1 billion run rate by the end of 2017 in gross cost savings. Improved working capital management is expected to free up at least $2 billion in cash by the end of 2017. Daniel Helmig, head of ABB’s Supply Chain management, is currently busy implementing supply chain transformation throughout the company’s 450 plants and many project sites as the company consolidates back end processes and establishes ten global transportation management centres. “It took nine months to design and draw up blue prints for the Next Level strategy. I’ll be fully committed to this for the next two years.”

20 | Management: Transport Collaboration starts with regional partners

Logistics service providers can of course play an important role in the consolidation of freight flows, but the most successful collaborative projects are initiated by shippers themselves. they must be prepared to acknowledge the opportunities together and also be willing to trust one another. But even when that is the case, there are still plenty of obstacles to overcome.

29 | Facts & Figures: Logistics Outsourcing

30 | Supply Chains to Admire 2016

Most companies are moving backward on the Supply Chain matrix that matter (growth, operating marging, inventory turns and return on Invested Capital). Interestingly enough the industries with the greatest challenges – high-tech and electronics – post the greatest progress. that shows the Supply Chains to Admire 2016 analysis of Supply Chain Insights.

32 | Management: Disruptive Changes start with social innovation

The logistics and supply chain sectors are adept at continuously improving their operations. However, they are much less successful at embracing disruptive innovations. that is not so much due to a lack of knowledge or availability of new technology. Instead, the problem is related to the social aspect of innovation processes. Innovation requires investment in people, leadership, culture and collaboration – and, above all, it takes time.

40 | Mindmap high-tech Supply Chain 4.0

A technology revolution is rapidly changing the way we work, providing threats and opportunities along the way. These developments impact Original Equipment Manufacturers, both at strategic level and at operational level within their supply chains. Together with service provider Arvato, Supply Chain Movement has created a mindmap outlining the route for high-tech supply chains, including road signs indicating potential hazards along the way.

42 | Tools & Technology

  • Warehouse inventory using drones
  • Effective marketing communication for supply chain professionals

45 | Supply Chain Agenda of Frank Vorrath

As we enter an era of smart buildings that have a variety of embedded technologies, Johnson Controls is well positioned as a global leader in building products and technology, integrated solutions and energy storage. The company’s planned merger with Tyco, a global fire and security provider, later this year will bring together product, technology and service capabilities to serve various end markets including large institutions, commercial buildings, retail, industrial, small business and residential. This presents new opportunities for the company’s supply chain operations, says Frank Vorrath, 45, Vice President Global Supply Chain. With 20 years’ experience in supply chain and logistics management, Vorrath was hired in 2015 to lead Johnson Controls’ global supply chain. Married to Nicki and with two children. Vorrath lives in Germany since 2012 and commutes between two offices in Germany, in Hanover and Burscheid, and Milwaukee, Wis. USA.

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